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GTI Greentech Industries (India) Pvt. Ltd.

Attrition – HR Importance

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Introduction

The department of HR is one of the toughest teams to be in.

Contrary to popular beliefs, HR professionals do not have an easy life
and their primary responsibilities do not include only organizing fun
activities, team lunches, secret Santa games and more. Just like every
other team in an organization, they too have targets and monthly goals
to achieve. Apart from that, they are the ones who probably have a
perpetually challenging task at the workplace – controlling attrition in HR.

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Content

• What is Attrition meaning?

• How is attrition formulated?
• Attrition in HR – Importance
• Types of Attrition in HR
• What are the various causes of attrition?
• Steps to control attrition in HR
 

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What is Attrition Meaning?

Attrition meaning as per the standard market definition is – the

natural process of employees leaving or departing from an organization
due to various reasons. Every month, there are several employees
quitting their job due to various reasons. Finding an alternative for them
on such short notice is undoubtedly a challenging task. They will have to
look for new feasible candidates with the necessary skills and
temperament, recruit them, get their forms filled, orient them to the
company culture and work on their confirmations only to set the wheels
spinning again.

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How is Attrition Formulated?

 The attrition meaning can be written as a formula as given below:

 
Attrition Rate (%)=
(Number of separations/ Average Number of employees) * 100

Attrition

13.43%

10.99% 10.91%
Axis Title

9.49%

Jan-21 Feb-21 Mar-21 Apr-21

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Attrition in HR – Importance

  It is necessary for companies to keep a tab on their attrition rate

as, without a proper overview, it can cause a major dent in the
company’s finances. Any organization will lose a large amount of
money recruiting new employees and training them to fill in the
necessary gaps. Also, a large amount of resources is lost in terms of
time & money while searching for new recruits.

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Types of Attrition in HR

 The different types of attrition are as follows:

•   Retirement Attrition
• Involuntary Attrition
• Internal Attrition
• Voluntary Attrition
• Demographic - Specific Attrition

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Types of Attrition

Retirement : This is when an employee completed his designated tenure

with the company. It is probably the only scenario, where the company is
prepared well in advance for the position that would become vacant
shortly.
Involuntary : In this form of attrition in HR, the position becomes
unexpectedly vacant when an employee is fired or terminated due to
ethical issues or lack of improvement in their performance.
Internal :Here, employees are quitting their jobs in one department to join
another department. In some cases, internal attrition is desirable, as it
routes talent towards more profitable areas. It also ensures better
employee-job fitment.
Voluntary : Here, the employee voluntarily resigns from an organization
to take up better opportunities or pursue higher education
Demographic – Specific : When there's a mass exodus of
specific demographics, such as old people, or a particular gender, race,
and so on. Involuntary. - When the employee leaves for retirement or is
terminated. - Retirement.
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What are the various causes of Attrition In HR?

 
Just like several factors contribute towards building a reliable team and
organization, similarly, numerous factors contribute to the attrition rate:
 
 Improper work-life balance
 Better job opportunities
 Commendable pay hike
 Lack of growth or work recognition
 Absence of proper working environment and infrastructure
 The untimely death of employees or retirement
 Unhealthy relations with managers or other members of the
organization.

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Steps To Control Attrition In HR

Here, we have compiled the 5 best ways to control attrition in HR using

analytics.
 
 Have the Right Data touch points for the Right Results
 Look at Employees’ History
 Individual Records for Individual Departments
 Employee’s Personal Emotional Quotient
 It’s not always about pay hike or promotion

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Step-1

Have the Right Data touch points for the Right Results

A good data set is one that is built with a goal in mind. The more
focused your data sets are, the better your analytics reports will be. When
working on an attrition report, make sure you consider all the metrics and
touch points that are directly related to the satisfaction levels of an
employee. By employee, we refer to people who belong to both the
highest and lowest levels of your company’s hierarchy. Only when their
happiness is considered, then it will be reflected in the happiness and
productivity of your entire workplace.
 

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Consider factors like

 Age
 Monthly Income
 Since last Promotion
 Martial Status
 Job Involvement
 Gender
 Compatibility or rapport with reporting manager
 Work life balance

All these factors boil down to the emotional levels of an employee and
results on these will give you a clear picture of possible attritions and
the time, allowing you to take any corrective measure.

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Step-2
 
Look at Employees’ History

Sometimes, it is easier to find patterns in an employee’s work culture

and career and predict if he or she would fit into the organization or last long.
For someone who has worked in more than four companies in a short span
of five years, it is easy to come to the conclusion that the maximum duration
the employee works before getting bored is one year.
 
Records, patterns, and data on this can give HR a new perspective on
possible turnover and even analyze the reason for his actions. If the
employee keeps switching companies for better pay or better work culture,
the HR can easily fix a meeting and take measures to control attrition when
that time of the year for the employee arrives. Talking it out with the
employee can be one of the most effective ways of controlling attrition in the
organization.

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Step-3
 

Individual Records for Individual Departments

When you have a database as a whole and then work on attrition

reports, the results can be bewildering. To control retention in the most
precise way possible, we suggest you classify the reports by
departments and work on analytics. This will further refine your
requirements and see better insights on which department has more
attrition, why, any pattern that can be spotted, fault with the managers,
team morale, challenging tasks, monotony and more.
 
For instance, the satisfaction level for an employee in sales can be
different from the one in project management. Breaking down the factors
into fragments will give you crucial insights that will help you come up
with better and distinct results and insights and help you take predictive
and preventive measures for every department.

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Step-4
 
Employee’s Personal Emotional Quotient

Often, our mornings and mid-afternoon thoughts are on home, family

concerns, relationships, EMIs, and more. This greatly affects the day’s
productivity and keeps an employee’s morale and satisfaction levels down.
to get the spirit up and flowing and to ensure the employee feels valued
and recognized, HR should take into consideration data factors that touch
upon a few personal spaces and talk to them to offer any assistance. The
results should be entered into the employee’s report and analyzed for
inferences. When this is done for three straight months with corrective
measures, you can see a change in the employee and his or her work.

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Step-5

It’s not always about pay hike or promotion

 
Additionally, HR should understand and take into
consideration that employee satisfaction and attrition are not always
connected to pay hikes and promotions. There are values beyond them
on emotional and personal levels that can also be the cause for
increased attrition rates. Keeping the two factors aside, the HR
professionals should also work on other sidelined factors to get a
deeper understanding of what’s happening within their workplace and
set the place right for possible new recruits.

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Conclusion

 
With the recent developments in technology, the attrition in HR can easily
be predicted and controlled through data analytics – or rather HR
analytics. By offering crucial insights on employee metrics, contentment
levels, happiness index and more, HR analytics helps you come up with
proactive measures to keep attrition under control. This will contribute to
an organization’s growth in the long run along with building a solid
reputation in the market attracting bright minds to try out for new
opportunities now available in the company.

QA-143-2 Greentech Industries (India) Pvt. Ltd. 01.01.2016